ECB norms...

RAISING THIS LIMIT is not just amatter of competitiveness, it’s a strategic imperative taking into consideration the risk factors associated with this line of credit,’ said Pratish Kumar, PartneratJSA.

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He added that Indian banks, especially those with overseas subsidiaries and IFSC branches, are now empowered under the draft ECB norms to extend rupee or foreign currency-denominated ECBs.

“This means they can directly participate in acquisition financing deals without being constrained by jurisdictional compliance hurdles. A higher cap would allow these offshore arms to deploy capital more meaningfully,supporting Indian borrowers in cross-border M&A and private credit transactions,” he added.